13 October 2016

The Role of DSM to Provide Flexibility in Electricity Systems

The share of intermittent renewables in the electricity system is rapidly growing all over the globe. In the EU they will represent 35% of electricity production by 2020 and are expected to reach 50% by 2030. But already today, at peak moments renewables make up for over 50% of production. This is a challenge for network operators, policy makers and regulators, but will also create business opportunities for old and new players.

In this context, it is essential to grasp the full flexibility potential throughout the system, coming from the demand side, network operation, storage and production. Discussions are currently ongoing on both the national, regional and European level. The topic is going to be addressed in several legislative proposals, which the European Commission plans to publish in the second semester of 2016.

The Demand-Side Management Technology Collaboration Program (DSM TCP) is one of more than 40 co-operative energy technology programs within the framework of the International Energy Agency (IEA). It promotes research and knowledge exchange among its members to further develop the use of DSM, have it fully integrated in the market, to improve operation and use of flowing renewable sources and enhance system security by reducing dependency on vulnerable supply resources. The following aspects were covered:

What are the sources of flexibility in electricity systems and how/when should these be deployed?

What synergies and what trade-offs between energy efficiency and flexibility?

How should system operation change on the road towards 100% renewables?

How can the new market design facilitate business models that enhance flexibility?